Higher Interest Rates Coming

Recently, the Fed announced that they will stop purchasing mortgage back securities on March 31st.  With that announcement, mortgage rates are expected to increase about 100-200 basis points after the Fed withdraws.  Only time will tell how high mortgage rates will increase. Therefore those who want to purchase a home, they need to start looking today.

Also to take into consideration is the deadline for the home-buyers tax credit extension which expires on April 30. Home-buyers need to be in escrow by April 30 and close by the end of June. Speculation has already started that the government might extend the home-buyers tax credit to aid in the recovery of the real estate market and economy. What else to keep in mind for potential home-buyers is when the Fed stops buying mortgage back securities, rates will increase. Then when the Fed decides to sell the securities they purchased, it is possible to another increase in rates. So while the market have experience low interest rates for the last year, interest rates are expected to rise this spring or early summer.  It cannot be stressed enough that buyers needs to take advantage and lock-in a low interest rates. Ask any loan officer and they will tell you that currently within the past few months, the rates are almost a historical low. Read more at CNN Money.

Like This Post? Get More Orange County News In Your Inbox!

Never miss important Orange County real estate news or changing market conditions!
Subscribe via RSS or email delivery!